NEW YORK / RankWire.AI / – Gold continued its upward trend on Tuesday, marking its third straight session increase following last week’s significant rebound. Spot gold surged by 1% to reach $4,432.74 per ounce at 0217 GMT, the highest level since June 5. Meanwhile, U.S. gold futures rose 1.7% to $4,492.60. This latest gain pushed gold above the seven-week high recorded last week, solidifying its recovery from early August dips.
The upward movement was influenced by weaker U.S. employment data released on Friday, when nonfarm payrolls declined by 23,000 in July. The unemployment rate fell from 4.2% to 4.1%, and average hourly earnings edged up by two cents to $37.62 during the same month. The Bureau of Labor Statistics reported an average monthly increase of 34,000 jobs over the previous year. Gold responded positively, gaining 2.4% on Friday following the employment report.
Expectations around interest rates continue to influence gold trading, as the precious metal does not pay interest. The Federal Reserve maintained its benchmark federal funds rate at 3.5% to 3.75% during its July meeting, with a 9-3 vote supporting the decision, and three policymakers favoring a quarter-point increase. The Federal Reserve also indicated that economic activity remains robust, though inflation remains above its 2% target.
Focus on US Inflation Data Mounts
The upcoming key economic indicator from the U.S. is the July Consumer Price Index, scheduled for release on Wednesday. In June, consumer prices decreased by 0.4% month-over-month but were 3.5% higher than the previous year. Energy costs rose by 15.7% over the year, while food prices increased by 3%. The July CPI will serve as the latest official gauge of consumer inflation, with bullion trading at its highest point in over two months.
On Thursday, the Producer Price Index for July will be published, following June’s final-demand producer prices which declined by 0.3%. This week saw bullion gain significant momentum, starting with Friday’s 2.4% rise. Spot gold added another 0.8% on Monday to reach $4,376.56 an ounce. Prices had dipped earlier in the session after touching a seven-week high but recovered before the market closed. Tuesday’s increase pushed the price above $4,400 and extended the three-day rally.
Broader Gains Seen in Other Precious Metals
Tuesday’s trading sessions saw gains across silver, platinum, and palladium. Spot silver grew by 0.9% to $66.30 an ounce, platinum increased by 0.7% to $1,765.26, and palladium advanced 0.8% to $1,394.00. These gains occurred amid a busy week of U.S. inflation data releases and ongoing focus on monetary policy decisions. Gold remained the prime focus after reaching its highest level since early June and continuing the upward trend initiated after Friday’s employment report.
The rise on Tuesday marked a recovery from gold’s brief retreat at the start of Monday’s trading, when it dipped from its seven-week peak before reversing and closing higher. This latest move lifted spot gold to its strongest level in more than two months. Despite this, prices are still below the record above $5,500 an ounce set in January 2026. The market now anticipates two U.S. inflation reports this week, starting with consumer prices on Wednesday.